Parents - Still funding VUL at 76

[gindie]

I am quite experienced and knowledgeable about mutual funds and saving for retirement, but plead ignorance when it comes to non-term life insurance.

My 76 year old father was sold a Prudential Variable Appreciation Life policy 12 years ago at age 64. Face value is $50K, current death benefit is $86K. Quarterly premium is $350, but it appears about $250 of that is the various cost of insurance, etc.

My father earns no income, he has been wheelchair-bound after a stroke in '99. It just seems counter-intuitive to me that he should be still paying for life insurance under those circumstances, but I am at a loss what to suggest to my parents so that they don't have to keep shelling out that kind of money each quarter.

What, if any, are the options?

[Puzzley]

The reason to have life insurance is to replace income for your family if you die. If you have no income, and your family is not dependent on you, you don't need insurance, and should cash it in immediately. Remember, insurance is protection. If it isn't protecting anything, it isn't needed. Life insurance is a great tool to protect your family, but it is a lousy investment.

I'm 62, and will be retiring in 14 months. My company provides $400,000 in life insurance while I'm still working, but my wife and I long ago passed the point where life insurance was needed, so we cashed in all our personal policies. Since our retirement is structured so that both of us will be taken care of even if the other dies, we don't need life insurance....

[FinanceDude]

Easiest thing to do is grab the policy and find the area where is discusses "non-forfeiture options." Or, just call the 800 number of customer service and ask what the options are, etc.

[jIMOh]

maybe the insurance policy gives his spouse a nest egg if he passes?